Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Emerald Oil Inc Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: April 11, 2016
Key Contacts
Back
Emerald Oil Inc files Chapter 11
Recently, oil and gas producer Emerald Oil Inc. announced that it had filed for Chapter 11 bankruptcy protection. According to The Wall Street Journal, Emerald became just the latest victim of the collapse and subsequent sluggish recovery of oil prices. As a result, the company officials stated that Emerald intends to seek an auction sale of its remaining assets.
Emerald Oil spirals into debt
In bankruptcy documents, Emerald’s Chief Financial Officer explained that the company has halted its exploration and extraction activities. Forty percent of its workforce was let go in the aftermath of the downturn, while the company struggled to refinance its debt load on four separate attempts. Its access to capital markets was limited, which significantly reduced its reserves and dramatically decreased its corporate value.
Following the submission of its bankruptcy petition, Emerald reported over $360 million in debts to $405 million in assets. Despite the recent rebound of oil prices, the company’s long-term outlook was still negative.
Emerald Oil’s reorganization plan
According to its bankruptcy petition, Emerald plans to seek an auction sale. Latium Group has submitted an offer to purchase the company, and will serve as the stalking horse bidder in the auction. In a statement, Emerald CEO McAndrew Rudisill explained that the executive team views Latium Group’s offer as the best option for the company to emerge from the bankruptcy process as a viable business.
Prior to the auction, Emerald plans to maintain normal business operations with a $20 million loan from Latium Group. This loan is subject to court approval, but the company believes it will enable it to maintain value for potential buyers.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
For more related articles on oil companies filing for Bankruptcy, check out:
- Paragon Offshore Files for Chapter 11 Bankruptcy Protection
- Arch Coal Inc. files for Chapter 11 Bankruptcy Protection
- Swift Energy files for Chapter 11 Bankruptcy Protection
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.